A project's base case or most likely NPV is $50,000, and assume its probability of occurrence is 60%. Assume the best case scenario NPV is 50% higher than the base case and assume the worst scenario NPV is 30% lower than the base case. Both the best case scenario and the worst case scenario have a 20% probability of occurrence. Find the project's coefficient of variation. Enter your answer rounded to two decimal places. For example, if your answer is 12.345 then enter as 12.35 in the answer box.
Expected NPV = Probability of base scenario * Return of base
scenario + Probability of best scenario * Return of best scenario +
Probability of worst scenario * Return of worst scenario
=60%*50000+20%*50000*(1+50%)+20%*50000*(1-30%) =52000
Standard Deviation of NPV =Probability of base scenario * Return of
base scenario + Probability of best scenario * Return of best
scenario + Probability of worst scenario * Return of worst scenario
=(60%*(50000-52000)^2+20%*(50000(1+50%)-52000)^2+20%*(50000*(1-30%)-52000)^2)^0.5=12884.10
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